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by the regulations, which is as follows : Married men, £5 per fortnight. Those having more than four children are allowed to earn 10s. per month per child over that number. Lads over sixteen and girls over seventeen years of age ara not included, as they are supposed to earn their own living elsewhere. Single men are allowed to earn £3 10s. for the fortnight. Married men not having their families in the settlement are deemed to be single. The rates formerly prevailing were : Married raen £4 per fortnight, and single men £2 10s. An inspector of improvements has charge of both settlements, so far as improvements on the land are concerned, and, after the first fortnight's work on the drain, each settler before he is again admittted to work must produce to the Inspector of Works a certificate to the effect that he has done the minimum of improvements necessary on his section—namely, to the value of £2 10s. for the fortnight. On the receipt of this certificate the settler is eligible to continue work on the drain. Instances have been known where men have been kept for three months from work owing to their not having made the necessary improvements, but in these cases generally the men had found temporary employment elsewhere. The department allow three months' leave of absence in the year to enable settlers to take other work at shearing and harvest time. After an absence of three months without leave a settler is struck off the roll. Advances in tents, tools, galvanised iron, fencing wire, and seeds of all descriptions are made to the settlers, to be repaid in monthly instalments at the following rate : Balances up to £2, —ss. per month; up to £3,—65. 6d. per month; up to £4, —Bs. per month; up to £5, —10s. per month. No credit is given over £5, except in very special cases. Arrangements are then made for the repayment of the amount, and a deduction of £1 per month from the settler's wages is always insisted on. Formerly there was a private store in the settlement, but in consequence of the exorbitant rates charged, the settlers are now supplied through the Government store, at Melbourne wholesale prices, plus 7 per cent. All goods obtained from the store must be paid for in full each month. The Lands Department during the past five months have utilised a portion of the reclaimed area for village-settlement purposes, the area allotted to each settler is 5 acres, and a number of settlers have been transferred from other settlements, where, owing to the unsuitable nature of the soil, there prospects of success were very remote. Up to the present eighteen miles of the main drain have been made, the top width is 90ft., and the bottom width one chain, the slopes being two to one, and the depth averages 12ft. The total cost of the works has been £120,000, but, as previously stated, £87,000 had been spent before settlement under the scheme alluded to was instituted, the average expenditure now is £20,000 per annum ; nearly the whole of. the main channel is completed, and there only remains the secondary drains to make. The total number at Koo-wee-rup under the Public Works Department is 350 settlers, by far the majority of whom are married. The Lands Department has received 270 applications, and about 200 settlers have been placed on the land, making a total of 550 settlers. There can be no question as to the value of the land when it becomes consolidated for growing all manner of fruits and all kinds of produce. Looking at the large number of settlers now located on the laud, many of them on small areas, there is every probability of several industries being started in the district, which we may hope will give profitable employment to many. I attach to this report a plan of the settlement showing the areas of subdivision. Homestead Associations. Under the Act an association means a combination of persons of not less than six who may be desirous of settling on land adjacent to each other. Blocks of land set apart for homestead associations shall not contain more than 2,000 acres, inclusive of roads, townships, and reserves. The number of persons located in each block shall not be less than one person for every 50 acres of its total area. No settler is allowed to hold more than 50 acres in addition to a township allotment. The covenants and conditions are somewhat similar to those under village communities. Up to the present the associations formed in this colony have not, I regret to say, been successful. Labour Colonies. Blocks of land not exceeding 1,500 acres in extent may be set apart as a labour colony, and vested in five trustees. For the purpose of aiding the trustees, the Act provides for persons subscribing to the funds of any labour colony to elect a committee of management of four members. Each subscriber of £1 or more to the funds of any labour colony has a vote for every pound sterling so subscribed for each member of the committee. The trustees and committee of management establish, maintain, manage, and conduct each labour colony, and appoint and dismiss all officers and servants. The trustees and committee of each labour colony, with the approval of the Governor in Council, may make rules for such colony for— (a.) The collection, spending, and application of moneys; (b.) The rate of allowance for work to be paid to persons employed; (c.) The cleanliness, good order, and health of the labour colony; (d.) The maintenance of order and discipline; (c.) The punishment for breaches of rules, provided that no pecuniary penalty shall exceed £2; (/.) And generally for the better carrying out of the purposes and provisions of the Act relating to labour colonies. In the Nineteenth Century for January, 1891, there is an able and very interesting article by